Manchester City are set to confirm the signing of midfielder Ilkay Gundogan from Borussia Dortmund.

The 25-year-old Germany international recently underwent knee surgery but that will not affect his move.

City have reached an agreement with Dortmund, with the transfer fee reportedly in the region of £20m.

Completion of the deal is understood to be imminent, with Gundogan becoming the first acquisition for new City manager Pep Guardiola.

Gundogan will miss Euro 2016 and the start of the new Premier League season after suffering a dislocated kneecap in training at the start of May.

But City are confident he will make a full recovery and play a key role under Guardiola.

Gundogan was also sidelined for the 2014 World Cup with a back problem that ruled him out for almost the entire 2013-14 season.

He joined Dortmund from Nuremberg in 2011 and helped them reach the 2013 Champions League final before signing a new contract in 2015 that still has a year to run.